001is correct. >> All right. Call in to order. >> Allegiance. >> I aliance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. Everybody's received tonight's agenda. Does anybody have any uh questions or want to make an amendment to the agenda? >> Do I have a motion to adopt tonight's agenda? >> I move to adopt the agenda. >> I second. >> Second. All those in favor say I. >> I. Any public comments? >> Okay. Uh and the consent agenda. I had a chance to take a look at consent agenda. Got a motion to >> make a motion to adopt the cons. >> Second. >> Now we have a motion in a second. Any questions? >> Yes. >>
002Try to get in order. >> That's okay. I do that every time. >> You're fine. >> Um, first I did get some information. I have questions about image learning, but my stand is still the question I guess is is that if we're spending $68,000 on this that we as a board would never see this kind of curriculum and I just feel very burdened to make a motion for it when I never get to see what the curriculum is. >> We can >> I think that's something that we should do. I thought that was in fact what we were supposed to do as I do not read your board policies correctly obviously um because I understood that we were responsible for this. >> Not that we would pick it out. I couldn't pick out a good
003curriculum. I'm not a teacher, but I would have views, I'm sure. And uh I just think before we vote this kind of money, we should at least see it. and and this was a contract that was already approved by the board. Um is what our as our primary online uh uh program that we use at QA. But I think I think that's a great request and I think that you know we could walk the board through some of the programs how it's used and what that looks like for our online student. I think that's a that's a great request for sure. >> And then uh proare therapy. Do we have eight nurses? >> No, we did not have eight. So, there's eight invoices and I and she wasn't sure. >> Proare bills weekly. So, that's
004why you see so many. And then we have one nurse and I think it was mislabeled. It's our behavior person is the other contract proare. >> Well, they're they're just listed as nurses. Exactly. >> Yeah. Okay. They're two separate people, but they are billing weekly where most of our contract people bill monthly. >> Okay. And then is this school improvement plan still part of this? Correct. it is. >> Um, and I mentioned to you earlier, I really feel that we need to read those over one at a time and have a discussion as a board. >> So, the good news is today it's it's not final, they're done, and put away. This is just the board acknowledging that. And really, we put every school on here. Um, we could have left out high school drawers
005because they don't fall under school improvement. Uh the only board do those plans that require um board approval are the schools that are under school improvement as designated by the state. Um those have to be just at least acknowledged and reviewed by the board. Uh but the schools are going to continue to work their improvement plans. You're going to be able to get feedback when you go to the schools. Um so these are going to be referenced from you and we can go back to these and then when we come back to the school, George, we're going to George attendance month. They'll they'll be presenting on their specific goals. So you'll have an opportunity to give feedback as well. >> But yeah, this is a requirement um from the office of school assistance improvement and
006it's also tied to funding um around $200,000 of school fun. >> Well, and I read about the report card and that also concerned me and I kind of I'm I'm really impressed with a lot of the schools. I'm really disappointed with our high school because we have dropped even lower and I'm I I question how that affects their graduation because we have a high graduation rate but if it's this low there are not enough students getting this core subject passed and understood before they go out into their lives and the numbers are going to follow everywhere. >> Yeah. And I think one that the states acknowledge that now there's multiple pathways to graduate rather than just the singular SBA math exam. They do get a CTE requirement. We talked about that. I'm really happy that
007the state has acknowledged the value of CTE and the relevancy of Amber learning. Um you know for example this year I was even explained by the state SBA that they use for our 10th grade particularly. Um, a lot of our students study geometry as eighth graders and it's that the our standards build up to algebra. This year, their full performance task, which was a big chunk of the assessment, was based on geometry. Some of our students have been taking that since 8th grade. >> And you don't know what performance task you're going to get, right? And the performance task, it's built on a series of here's the problem and the working is a it's a scenario and each part that builds off of of the other part that the student completes. If you haven't had
008geometry, even though you're studying algebra 2, it's it's not a true reflection of what the kids are even learning sometimes today. And we have a real high percentage of students that are taking the SBA in Quincy. We're we're fortunate in that regard, but there are other communities that are very where students aren't taking the high school level um because they're not finding there's other pathways to to graduate without that SPA. And when you can take your SATs and your ACTs for your college, the relevancy even that state exam at the 10th grade level, um it's it's starting to to drop statewide, especially with all the other pathways to graduation. So, that's how we get our students to graduate is or they take a break to college, they take a replacement math or they take um
009uh there's a couple different ways. Their CTE, personal finance, they can take that as well and that counts. But we are concerned with our math course. There's there's no doubt about it and you know, our staff is working really hard to address it. Um but we definitely can improve and um Alison's going to be going over a full work session at George over our student data. And there's some areas that I'm really proud of that we've outgrown the state here in Quincy. our performance levels aren't where I want them to be or anybody really wants them to be a lot better. Um, for sure. So, we share that. >> Any other questions? Any questions? >> All those that given an advisory vote. So, yeah. Would you like an advisory vote on approving the consent agenda?
010the the full consent agenda, the whole thing from the >> Yes or no? >> 41. Yes or no? >> All right. All those in favor? >> I I Okay. And we're on to reports superintendent report. All right. I have a few things. Um so again and do you have a student report today, Andre? >> Yeah. >> Okay. So I won't steal your thunder, but it is homecoming week and that's all I'm going to say and the rest. But I do want to thank you notice we have some local businesses that are participating in the downtown decorating. um port has really gone for it. Uh Peter Pit, there's a couple other businesses. It's just really fun. So, just want to acknowledge and just thank the community support of our kids. It really means a lot. Um
011I don't if you read from my my weekly update, but I was able to spend uh Thursday at Microsoft headquarters where uh Quincy was featured on how we are implementing and discussing and and using AI here in the district. And you know some of the ways that we are it was validated how we're using and and thinking about AI is that we are not making AI central um we are decentering AI you know we're using AI what are those complex problems that we're trying to solve in the district what are those those issues or those questions that we're trying to ask and then how can we use AI to help us address those questions. Um we've yet to adopt a singular AI platform where other districts have. Um we're still holding right now. Um there's
012still two that we're looking at, but we're not going full committed into anything. That was some of the recommendation from some uh University of Washington computer science that don't jump at the first thing. And we've been really hesitant to do that and we've been really intentional about training our staff to make sure that they understand implications of AI and our students understand fully when it can and can be used. So it was it was great to be a part of that um and be featured by Microsoft. Um in addition uh they also they did announce that they are going to be um launching uh co-pilot and all Microsoft suite for free for just Washington students and Washington students only. So that will be a big cost saving measure too and it will even the playing
013field but a lot of students as well. Um lit day we last Friday a really great day of learning. Um I was able to get involved but two of the schools staff were really engaged in um studying things around hope. Um uh high school was doing a deep data diagram school improvement plan. Um middle school was looking at power strategies and working with their yellow also middle learner students. Um went to links they did a great job around PBIS and looking at student behavior data in specific locations and areas and how to respond to that. So overall, I'm just really proud of our staff in October. It's been a long stretch and can be tiring, but our staff uh they were engaged uh sleeves rolled up ready to work. And then WASA is coming up
014uh in November. I know Chad, you can't make it. Uh can everyone else make it to WASA? You know, up there. Yeah. But you'll let me know, you know, soon enough. Um and then we get we're coming over Wednesday night and we haven't registered anyone for pre pre-conferences. We'll get the students registered for this. There's a student pre-conference. Then there's a law and then a student conference. So just let me know if you want to be registered for a pre-conference at all. If you want to do the law, if you want to do the the student pre-conference with students, you can do that. So just let me know which one. I'll I'll include uh narratives to each of the sessions. Just let me know if you want to attend. All right, that's all I have.
015All right. And let's do one more. I have the report from Lucina. homecoming week for sports like school and time. The high school has seven this week such a Christmas gift and for it week riding a hook volleyball game on Wednesday, movie night on Thursday lunch activities and pep assembly on Friday. Um and Lady Jack soccer Tuesday and Thursday time. Yeah. And I have my own report like do you know like remember about that survey that I want to do with the Spanish students and yeah maybe will be I will be doing like not the survey online will be like a interview with each uh student but in a large group I talk with Mrs. Baker about it and with their Dr. rose and maybe we'll give like a um ah but it's like a
016student history. >> Yeah. And then we will use that for for the student they can say like whatever they can they want to say and then yeah we will use that for get more information when yeah do I have a appointment tomorrow Mrs. to see which will be the three question that we will go that with them and that information will be um um help health helping how can I say like >> helpfully to all students >> hopefully >> yeah in high school and maybe Quincy mirror school and we'll see if we like something like that on the elementary schools like that because we want to do like the same thing in each school but my parents point of view based on my right home. >> Awesome. >> Yeah, that's cool. >> Thank you. Can
017I ask please? >> Are you is it performing at halftime this time? We don't have practice like this song because the field will be uh busy obviously then we can practice right right there but maybe we will use the Quincy M school to practice right there. >> So >> yeah then maybe maybe for the last game >> okay >> but I'm not sure not so sure if we will this Friday. >> It was really exciting. It was the I just want to congratulate Andreas. It was the first time in I think over 30 years I think or if only they might have done one when he was in high school. Um but so a very long time that we've had a big enough band to do a full halftime field show and they did it
018at the last home game two weeks ago and it was really good. So just congratulations to you Andreas and to all the kids and um I think we'll see him maybe one more time is what I'm hearing. So Dave us >> okay thank you sir. uh board leadership report. We had our leadership meeting yesterday. I think the biggest takeaway to share with everybody um I know we all shared some concerns about um a private speech as a member of the school district or faculty and we were um kind of individually reviewing some of that information in our policies agendas. As a step towards better understanding, we are going to invite the employer in next week as an executive session to talk to the final about not next week, next meeting, excuse me, as an executive
019session to talk through some of the implications there and if there's any changing policy. So just the WIA changes a little bit. >> Yeah, I can talk about that. So WIA, they have changed their fing structure. I said that and we could update that. Um, if a if a coach is ejected, they are fined $200 for an injection. If only boys soccer is ejected um and only per cussing. If they are ejected, they are also subject to a fine. Um, so it just doesn't feel good to me that our students would be fine. It doesn't feel good to me that you would only see it allowed. um play soccer when you know we do have ejections in other sports other than soccer. So it just it isn't sitting right and isn't sitting right with with
020a good majority of superintendents and there already has been an amendment filed by college place school district. So, as soon as that I understand what that amendment looks like, um I'll make sure that the board they knew we can see that amendment. I have a chance to talk to you about it and then um we you know our our adesa come in and she'll have an opportunity to to vote. >> You know, I I I guess there were quite a few objection uh ejections last year in boys soccer that was languish, but there were some in football and I've seen some in basketball and I've seen some in baseball. So it just I I the premise of singling out a one specific sport. I I don't quite understand that and everybody's kind of scratching their
021heads. So I know with all the superintendents the CWAC are all on the exact same page. Um just no one goes around that. So um once I hear what that amendment looks like, I'll make sure to pass that on the board. And that's it for our reports. Um we're on the policy review and adoption. Uh the first one is just an initial for reading review. >> You have any questions on any of the policies or procedures associated with the first reading? >> I have some comments on 6730. Okay. On the policy, uh, it in the title it specifically mentions adults, but there's but it only addresses students in the policy. >> So, my suggestion would be something that addresses staff as well in that. And then on the procedure side, um, for 6730, uh, there's
022a lot of talk about how refunds are issued. Most of them are centered on um withdrawals from the district. Uh might be worth having a provision for students or staff to request a refund while they're still enrolled and not graduated >> um if they don't want to use it anymore or what have you. My understanding is that that can happen, but you might as well be in policy or in the procedure >> for students who are currently enrolled in staff. >> Correct. Yep. >> Currently, I'm only in >> the district. >> Okay. >> So, where this came from is that you were issuing refunds for a penny. >> We were carrying a dead debt, I guess, is the way it was described. So, we can't just take the money and put it into a separate
023account. You know, we have to do something with it. and if people don't want a check for a $150 or whatever and many don't uh because they're living in other places. So without a policy and procedure on how we deal with that dead debt, we can't collect it. So really the thought is for those clients where we try to you know issue refunds but staff or students have said we're good or we can't get a hold of them that could get put into a separate account. And initially what we're thinking now is for students who have any old lunch debt, we can apply it to that as well. So that's kind of the genesis of that polit procedure. I was really Thank you, Casey. >> Question on the second reading. >> Yeah, I was going
024to say one second. um specific to policy 5010. I'm just wondering if it's um necessary to add examples and let the policy speak for itself. I also thought the same thing. It seems like you're opening yourself up for liabilities by giving examples. required to my law. >> I don't know. That would be my question. >> That's the one where I'm like, since it's not for sure, I don't know if you want to hold it for >> a third reading. We can table it. Oh, >> I had a question with policy 1825 in regards to the possible removal of a school director. Um, it just I don't I don't I I do see like the legal references at the bottom, but I guess um I've never heard the removal of an elected official by a committee.
025So, I'm like I'd love to learn more. And is that a label? >> I'm sorry. Which one are you going? >> You bet to first read. You're okay. >> Wait a second. >> 1825. It's just talking about the possible removal and I'm like um I'm just thinking my my my brain where it's going. family. So if it's voted in by the people and then this committee removes um >> it's not saying remove them from the it's removing them from the off you can remove the from president if you want to. It's leadership positions or committee positions. >> You are correct otherwise cities where there was a recall election to remove a sitting board member it would have to be a public vote. I will say and there's even a discussion around you know for one
026or two that have shown up for month and they've been a communication but just haven't shown up uh even then just to remove a board this is no this is not that >> yeah thank you >> yeah no problem >> that was it >> I was read I read the first part too and I was like that doesn't make any sense yeah >> um so I guess I need a I need a motion for the second reading we're going to table. Let's make sure we note the table. We're going to need a motion. >> Yeah, >> I motion to approve the second. >> You need a move to table the entire thing. >> No, just those just the policy question. Is there a motion to uh table bossy 5010 and do 1310 24 and 52?
027>> Is that right? Be second. >> I second. >> Okay. I move to amend that motion to table policy 1510 until the next regularly scheduled meeting. >> All right. All those in favor say I. >> I. Oh. Yeah. >> All right. So, that motion passes and now any unfinished >> we need to >> Sorry. I move to adopt the remaining policies and procedures that exclude 5010. >> I second it. >> I move second. All those in favor say I. >> I. >> All right. All right. And no one finished today. Why I will say we're now the number 10 school probably protein. >> They are a very busy group. >> I can only uh any new business anyone you want to add discussion requests for future topics? >> Wait in the new business there. >>
028Sorry. >> Oh yeah. Tonight we'll review the Innovation Academy ASP. Sorry. >> So used to >> Yes. I'm sorry. We were gonna have a student with me to share about this, but Jojo wasn't able to make it tonight. So um so it at QIA we have had an ASB and our ASB has been um very traditional similar to what you would mostly see in other schools and other large schools where there were elections there was an elected president, vice president, secretary treasurer etc. And over the years we found that to be really challenging with our very small size and the online nature of the majority of our students. It's just a model that's a little bit tricky for us. However, we do have an ASB um that um includes our students from the big picture
029learning program and the online learning program. And so this has been a little bit of a challenge. Um so we've gone through a process last year to revise our ASD constitution to kind of go about it in a different way. So we just wanted to share a little bit with you about that. Go ahead, go to the next one. Um and uh so the first question, go ahead and click again. I think it's coming in. There it goes. Um the first question is why even make this change? Um uh the traditional ASB model was just really challenging for us because we don't have the majority of our students at school every day to meet and we also have um students that come and go at different times during the year. Uh we don't even have
030all of our students necessarily all year. We have students that are coming new to us at different times. Um we have students returning back to traditional school at different times. and we were really struggling to get anyone to run for ASB offices. It was always an arm twisting of encouraging somebody to run for each office. And finally, we got to a point last fall where we literally had not one single student that wanted to run for one single office. Um it just was a big commitment to them for a whole year. Um uh it although it provides an opportunity for student leadership because we don't have the the big uh amount of activities that some of the other schools have uh it just was feeling like not the best fit. So, uh, we reached out
031to, um, uh, Greg Barker, who's an a person who works with the Association for Washington Student Leaders, and asked him what other small schools and alternative schools do in this situation. And he was able to give us some ideas. And we took his ideas, worked with the kids, and made a change. So, go ahead and go to the next slide. um the the change that we've made instead of having one standing ASB elected officer core that's in charge the entire year we're moving to sort of a um projectbased seasonal model. So in the fall for example we'll have a fall student council group and those students that are interested in participating during fall are all welcome to come. that group meets, they'll elect a secretary and a treasurer to just manage them all activities. They'll
032determine the scope of what they're going to work on during that season, like for example, a spirit week and a Veterans Day assembly. And then that group will work together for that time and then they're done after the fall. Then another group will convene in winter and whoever's interested in working on the winter spirit week or the winter um before school ends ESB event will gather for that. and that group of students will decide on a secretary and treasure for that project in that period of time. Um, same thing in spring. So, the interesting changes in this is that it really does give us a chance for leadership roles for more and more students, but they only have to commit for a smaller amount of time. So, we we're hoping that we'll have students who
033will be willing to um help for a certain chunk of time and not have to commit for the full year. Let's say that they're involved in a school sport and they're really busy in the spring. maybe they can still help with ASB in the fall. Um, we also will be able, we think, to include more students in this way. It won't be mainly a crew of five elected officers that are doing most of the decisions. Hopefully, it'll be able to get more student input and more opportunities for that. Um, and by doing that, maybe we'll have more students that'll have some opportunity for leadership experience. Go ahead and go on. Um the way we went about this is um as I shared we reached out to get ideas from other small schools or alternative schools
034about how they were managing ASB. Now we worked with the students mostly in the high school big picture learning class. Um that group of students was doing a lot of learning about um leadership and governance. Last year they visited Olympia. They um visited um city hall and did a bar town hall meeting and they were kind of studying these things. So we use them as our base group to kind of bounce ideas off of. And then in the end of the year we had a constitutional convention day where we invited um students from online and the BPL students together um to look at making changes to our constitution. They uh reviewed it article by article. Uh created the document that is before you for approval tonight and they approved that. They thought it was fun
035to like sign that they were founding members of the new constitution and um the adviserss and the principal all approved it and so now our next step is to ask for your approval. So that's what you're we're here for tonight. I can answer questions about it but we're asking for your approval of this new style of ASB constitution for us to move forward. And that is it. If you have any questions for me getting together for like graduate graduate graduates and then like the party they were saying good and bad or be a part of >> the Oh um our students do connect with the uh with the Quint High School students for graduation and they go to the senior party. >> I think it was in middle school. >> Oh the eighth grade promotion.
036Yeah. The way we handled that last year is that we had um a couple of parent nights to ask eighth grade parents to come in and talk about what did they want to do for eighth grade promotion. We didn't have very many parents come. So then we put out another opportunity and said this is what we think we're going to do for an activity and we didn't get any feedback from that. So we kind of went forward from there. But we and we actually had done that that year before too. Um asked them for their input. So yeah, that's pretty much where we're at. I move to approve the QIA ASB constitution. I see >> the last page um includes like uh the expense and revenues. >> Yeah. >> So this is specific just to
037QIA students. >> Yeah. >> And so all this did was just change the leadership model. >> It just changes the the the constitution of the leadership model and the way that they're going to operate as an associated student body. And the reason that's included is because we had to have an official meeting to do the uh budget for the next year because we were in they call it um they they call it a like a stay year where we weren't an active ASB last year while we were doing the the review. And so um the direction we got was to include a budget at the end of that constitutional conviction as our official budget for planning for this year because we hadn't had a standing treasurer during that whole year. Yeah, good question. >> We
038have a motion and a second. All those in favor of adopting the constitution. Oh, >> we keep for now. >> Yeah, it's okay. >> Thank you, K, for reminding. All right. So all those in favor of say I >> be happy to hear. >> Good work guys. >> Okay. Now any future requests for topics or do I need to say that I want to go through all of the plans at the school? Oh, the improvement plans. The improvement plans. I think we're going to go through all of them as we do the school for the reports. Yeah. Visits. >> Okay. >> Well, then we're on to our levy replacement levy update board session. >> All right. Welcome Corey Player. This is Corey Player with B Davidson. And the district has had a longstanding relationship with
039BA Davidson. They had sold bonds from multiple long elections for us and then they helped us refinance bonds and they also have helped us prepare for our uh levies and provide really good data for when we go to voters um and really accurate data and we just really appreciated their partnership and um you know I'll let Corey introduce himself but Corey is a finance guy has a lot of school experience and we're really like you to help us out on here today. I need to speak to for online. Are we good to go here? I can >> uh thank you Nick Corey Pagger Da Davidson. I work kind of the Spokane office and then I travel the stale office uh quite frequently. We support K12 schools exclusively in Washington State. And as Nick mentioned, we've
040been partnering with Quincy for about 20 years before a lot of things changed here with the commercial side of development. Uh before my time at DA Davis, I was educational service district for about 15 years doing school finance. So I kind of bring a different perspective to the the levy world. And if you weren't excited already agenda, we're going to talk about taxes tonight. Everybody's favorite topic. But these things replacement tax, not a new tax. So we'll get into that. Um but if you can go into um the materials online or I can just walk through them on paper as well. What do you prefer? >> No, I didn't. Okay. Yeah. email me this and we'll make a link to the agenda. I don't have that topic. >> Okay, great. My bad. Sorry. >> No
041worries. >> Um, so on if you're on slide two, you'll notice I have four topics today. Intro introductions to levies and bonds, uh, property values and school taxes. We're going to give you a few replacement levy examples. And I have just a real brief bond refunding update. They're not quite eligible for refund today, but right around the corner, we might be able to save taxpayers some money if interest rates. So, moving on to slide three. What we'll be talking about today in the introduction to levies and bonds, there are three major types of elections that are available for schools for local funding. Uh the first one is levies. Levies are for learning and this is flexible revenue. I'm going to put air quotes and flexible because there's so many things that the state isn't funding
042currently that the levy is supporting in addition to athletics, extra course offerings, extra foreign languages, music, art, you know, drama, those things that the state doesn't fund. but it's also still funding electricity, extra fuel costs, um food service, special education. So, there's so many things that this is going to that the state doesn't fund completely. You are subject to levy lid laws. We're on page three right now. And those levy lid laws, you can ask for whatever you want. State has some caps on that. And you're not near those caps currently. So, we'll talk about that as well. uh and what the board's desired to go to those limits that you see maybe some of your neighbors at. The good news is on levies, you need a simple majority, 50% plus one. It's really hard
043to get people to agree on anything, let alone taxes, but 50% plus one is what you need. And your current levy is approved through calendar year 26. So in 26 is when you'd replace the the existing one. So if you don't act next year, then you have a gap in funding for 27. Capital levies, most common uses, technology, safety, and security. Um, up to six years collection, simple majority. We're not going to talk too much about those. We're also not going to talk too much about bonds. The bonds are for buildings, and that's what I think the district's last bond was in 2016. Common is 20 years. Right now, you can technically run a $320 million bond, but we'll get into that today. >> We don't want >> Yeah, we don't need that. right now.
044>> Uh slide four shows the uh robust support for the Quincy school district premier voters. Even post mccclary or post mccclary and postcoid in 2022 you received over 60%. Remember you just need simple majority 50%. Many schools across the state and some of your neighbors are really struggling to be at 50% support. So this shows really high level of support for what you're doing now. And you'll notice there were a couple hiccups in red in 2000 and 2006. That was before simple majority was passed. You still got 56 and 59% of people to agree. And once the first one failed, you came back with a cycle and everybody's like, "Oh yeah, whoops. We forgot to vote yes." And then they skyrocketed to 65 66%. And here's that bond that we're going to talk a little
045bit more about at the very end of the presentation that's now eligible for refunding. It was approved at 64%. Long story short, you have 20 plus years of great voter support. On slide five, just a few more details. If you're an old-timer like me, you've been doing levies for 20 to 25 years. We used to call them ms, maintenance and operations levies. We stopped calling them maintenance and operations levies because schools started passing capital levies for technology, capital levies for roof repair. And so some districts have a capital levy and a maintenance levy. They sound like the same thing. So now we're calling them education programs, operations levies. And if you're looking for anything in law, RCW, whack, you're trying to learn a little bit more about it, you can't search for education levy. You're
046going to have to search for enrichment because they deem that you are fully funded and you don't need anything. So this is only enriching the program and not funding basic. So there's some nuance here. I'm using air quotes for the second time. I mentioned you cannot do whatever you want. Some areas would used to support a $5 levy. Uh Davenport was one for example. And the state came in and said, "We're going to cap you." And your cap is 2500 per pupil. Adjust by inflation. So you take your total FTE times it by that number. The state says that's the most you can tax locally. We got the we got you covered at the state level with all the rest. So you're not quite at your lid today. And then your lid is going up.
047I'm going to show you some members come in. There's no validation. And that's my last note on this page. Doesn't matter how many people show up. We'd love everybody to show up and vote, but it doesn't matter if the turnout's low. It just matters of who it does turn out. 50% plus one. Bonds need to be validated. And we can get into that on a rainy day. What is the board's role? What are the next steps for the board? And the the most important thing that the board does is adopts a replacement levy ballot resolution. And that puts it to the county's steps for the county auditor to put it in front of your voters. This ballot resolution that you will adopt in the next few months sets the date that you want to be
048on the ballot, the amount of the levy, an estimated tax, and you're going to pick for how many years, and you get a little bit of language. There's like 75 words you can pick. And then there's also something that's kind of newer. You might not remember from 22, but there's a now a voters's pamphlet. The schools used to be kind of an optional thing. The voters's pamp was always for presidential or governor or like uh license plate tab renewal for and against the the $30 tabs. Now you have the responsibility to appoint for and against people for your measure. Some sounds like something the county should do because you're going to be in this meeting like please rise if you'd like to be against us. And I think that's really hard for a community member
049to step forward in front of the board to say that, but not in front of the county, right? A little bit more anonymous that perspective. But you have the job to appoint for and against committee members while you're setting this resolution. If nobody steps forward in one or both of these positions, the county will attempt to fill those spots with a local citizen as well. It cannot be an outsider. And then the board also provides an explanatory statement. What is this levy? you get more words that goes in the pamphlet, but in the actual ballot you have like 75 words. So, it looks like a long list of things, but a lot of this is taken care of by your leadership team based on your feedback and taken care of by your legal correspondents as
050well, your bond counselor, but that's really what we're going to kind of set the stage for tonight is give you the tools that you need to feel comfortable about these items. And just to add on to that, traditionally our November meeting is when the board passes the resolution. Then once that resolution in that matter is and are we they will draft the language for that resolution, that's when T will then go to the county, we go to both Douglas and Cran County to hand in that resolution and then we also have LEGO drop the explanation for us. So that will get put in too and we just, you know, you really want to get these things right and you really want to be accurate. So we worked with uh you know a great team of
051people to make sure that when we do do out voters that the information is spot on. So this kind of a bonus meeting right before the November to kind of set the stage get information in front of you so that there can be some correspondence before that November. I mentioned that one of the board's roles is to pick the election date. And on this slide on slide seven you're going to see the four different months that are available in our state. We have February, April, August and November. You're going to notice I'll kind of cross August off the list right here. Uh elections, it's so important to have teachers involved with helping communicate what levies are supporting and they're in a much well-deserved uh break from our kids. And so you'll notice that not many
052people try in August and those that do haven't been overly successful. And there's a common misnomer that says you must go in November because that's when you get the most turnout. And that's really true of presidential elections. But on any other election, Februaries have pretty good turnout just like in November. So unless you wait for every four years to go to the presidential election, a February election is going to have just as good as turnout as an off cycle November. So most schools do February. And the biggest reason is you get two attempts. And Quincy hasn't needed that second attempt since early 2000s. But if you need a second attempt and you only run in November, you're out of attempts and you'll have lose the whole year of support from your local community. So most
053schools pick February and they go and then that leaves three options. If you were super close and you felt like, man, we just missed the notch on communicating, you can turn around and go in April and you'll know there's support for your budget when you're adopting that in the summer. Some people say, wow, we really missed the mark. We're five percentage points off. We need time. and they'll wait for that second attempt in November, but then they're building a budget without that local levy. So most schools do a one-two punch of February, April or February, November. And so that's what we're talking today is making that assumption you want to continue the February model that the district and the board has done the last decade or so. >> Feel too soon. February like, oh shoot,
054we got to get salt in here for that. >> Right on schedule. >> We're right on schedule. Um, and then in your weekly update, I have a a timeline that's backwards planning for an election date. So, review that and we really have our marks. This is this is step one, but it it this is how we traditionally done it. >> They reached out to me about a month month and a half ago. We've been kind of preparing stuff in the backgrounds and talking numbers and working with TIA on estimates and what would be needed versus what wanted. And I haven't heard from public schools yet. So, those ones stressed me out, but where you guys are heading. and very efficient. It's a good time. >> Well, you take this very seriously and um so I
055I feel good about the timeline and another thing that we've done traditionally at Quincy is we we run a four-year money and that four-year levy has really helped us to switch budget budgeting out or you know for the future. It's been really helpful and that's a really good point and we're going to show that four year estimate coming up. Some people say should we do a shorter levy just two years. There could be voter fatigue where you're always with your hand out. Vote yes. Vote yes. And if you know what you can sustain your programs with and how you can support your kids four years and you you're comfortable with that amount, why stretch it over to I have a meeting with Odessa next week. They do it anyway. Just every year they do. They're
056very small. Uh a couple dates on the next slide to put in front of you to circle on your calendar. Uh Nick talked about that December filing date that T will take care of for the February 10th election date. We're grateful it's not a Valentine's Day this year. That always makes for some interesting jokes. Um circle the 23rd. That's when you're might see those bail uh ballots in your mailbox. So that's when the district the district can do one uh paper communication to all citizens in your community. that would be a good time to target that because not everybody has a tie to the school or a grand uh student in the school etc. So circle that and then we'll know we'll usually know the night of the election at 8:00 p.m. but that's the
057day it's certified and then hopefully we won't need to worry about any of those other dates. So that's just setting the stage the introduction levey's for learning bonds are for buildings. Uh this is a replacement levy but let's talk more about your numbers. I'm a numbers person, kind of a data dork. And on this page, it shows the size of your economy. And this is a really interesting change because of the massive commercial and data center success here and how you've utilized that to get funding from those data centers and from that tech world into your classrooms. But your your tax base really grew before this chart started back here on 2008, 2009. But now it's gone from 1.8 8 billion up to 8 billion. Then correct me if I'm wrong, but I think your
058tax base is bigger than Moses Lake. I think it's bigger than Wachi. >> Yes. >> Um because of that commercial success and how the district has utilized that. The other thing that's really crazy is your new construction keeps going up and up. Even in a time when interest rates are 7%, you had $ 109 million in new construction. Those are big school district numbers. Those are urban Seattle, Spokane, Tri City numbers. And you've had 500 million in growth in the last 5 years. So another thing to think about as the board considers numbers is if you keep everything level, then those new development is just helping pay the taxes that other people are going to pay. If you increase your numbers with new construction, they're going to pay additional tax while everybody else's taxes are
059level. So keep in mind how you can utilize new construction and keep that mindset going is making sure these people are contributing to the school district instead of maybe just offsetting what other people were already paying. That's a really it's a philosophical debate of course but that's one thing is you've had 500 million in new taxpayers. Not everybody has that$8 billion taxpayers with a B. And then this year's value just grew 2%. So hopefully everybody that's a property owner had a big sigh of relief that it didn't go up crazy again that it did back here that now things are getting more back to normal on property value growth because back here people still said vote yes to your levy but they noticed 10 to 15% increase to their property value shock and as the
060school board you can't just raise taxes because that went up that city sewer water county fire can't and I'm not knocking them at all but some of those are rate based taxes that grow with your tax base you are not that tax base. You have to ask for more or less depending on each election. >> And that's a common misconception too when assess values go up. Some people think that we collect more in the school district and that's not the case. >> People are paying more, but not to us, right? They're paying more to other entities, but we're the only ones that have to ask yes over and over and over again. Many governmental entities pass a levy and it goes out in perpetuity and they only have to ask for a lift when they
061want to increase the amount. Ours is sunset and we have to replace them. Sunset and replace. So we're in a unique position as a school. So that is the size of your economy. This is who pays the bills. On the next slide, what is the bill? This is your EPNO history uh at the school district with roll back. Now roll back is a unique thing. So in green is what you've collected. You were forced to roll back here, here, and here because you're at levy lit. Remember I mentioned you can't do what you want to do. You can only do what the state has that formula for. So they told you right here when the state fully appointed you that you had to not collect 2 million in taxes from your citizens and here 144,200.
062You haven't had any force roll back here because your levy has not grown as fast. You kind of see where you were growing. You kind of reset it here. Your max is 10.4 million today and you're 8.8 million. So you're about a million and a half under your levy lid currently. So there's no roll back. But this shows you that you were at a pace where you were growing up here and now it's kind of leveled off with a little bit of growth rate for depletion. This is the bill that we're looking at what where do we jump off from here. Next slide is how we translate who pays the bill versus the bill and that is a rate tax rate. So, this is all projected on the ballot, but what you'll notice here is
063the tax rate goes down as property values go up. That was the thing that Nick mentioned. We can't just raise taxes. We're not one of those entities that is rate based. We are an amount based levy. So, your rate was 428. That's where it peaked after the new bond was approved. The bond was approved at 212 and today that bond rate is at 96 cents. Bonds are locked in. you sold in 2016 and just because property values are up doesn't mean we have higher principal and interest payments. They were locked in a long time ago. So now we only have to pack a homeowner 96 cents per thousand when it was a buck 89. So this is all good news. And here shows the levy coming down as your property values grow. So the floor
064was $1.96 over a dollar less than what you asked them to improve and that's because of the way the home values have changed over time. We're trying to look for this jumping off point what to do moving forward. I would be remiss to not share with you another tax that is important and has the word school on it because if you go to your property tax statement, you're going to have four rows with school. The board only has control of two, the bond and the levy. But this gray one is how we fund basic education in our state. I went back as far as my birthday in the 70s and it's that's how we funded education. So that money here goes to Olympia and it gets put into the blender. you get your money back
065based on your enrollment, your bus routes, how many meals do you serve, how many specialist students you have, but here's a brand new tax that passed through McClear. And so now there's two different state schools taxes. Even those have come down a little bit, but if you look at your state of their score, the board has no control released, just these two here. These are the only two we're talking about. But I want to make sure you have this power, this this information available to you in case somebody says you're misleading me. You should be asking for these. Well, I have no control over those, but let me tell you what those rates are and you can focus on what you do have control over the board. So, this is an FYI more than anything.
066One more slide. Uh, I called the community trust slide. In green is what you ask the voters to approve on the ballot. In gray is what's actually happened. You can see you only missed the mark one time in the last 24 years. and it was by two pennies. This is really good work. So, I'm not sure when Tia took over, but whenever she took over the reigns, she kept doing what whoever did before Tia did. Um, I don't think she's old enough to be the business manager and she was but you asked for a 125 in this last collection and you're outperforming those estimates. So, you don't get asked for more. The amount was approved and this is how the county actually calculated those rates. You're outperforming the rate by 13 cents per thousand this
067year. But those are good conservative estimates to the voters. You don't want to come out and be all rosy. Vote yes. It's only a dollar and you mislead them and it comes out to a$112. So this is the right way to do business is state a rate. Hopefully it's overstated and you can outperform it but not the other way around where the board is saying look rose color glasses. Well yes this is super affordable but really trying to stay really consistent with being conservative. This slide next has a lot of stuff, so it's probably easier to look um on your handout, but this shows what your neighbors tax rates are. And I think neighbors might not be a great comp because Grant County, Douglas County, so many small schools that might not compare. So below
068that, I put the schools you compete with athletically. the the schools that you go see their football fields and their gyms and their sport programs that you uh fund through with a levy. But this isn't a great slide to help with decision making. You never want to say I want to pass a levy equal to Ellen birth, but it helps you decide what where you decide to set your levy at. Will you be competitive? Will you be in the middle? Will you be in the lower end? I think it's just extra information. You'll notice I think when it comes to your athletic division, you are the lowest currently. But remember, you're let me live. You can't go you're close on millionear lids. You can't go that much higher. >> That's based off the enrollment numbers.
069>> Correct. And some of these schools have different lids. So, some of them might have a $2.50 on their tax base lid. Some have a peril lid. >> And right now it's showing the lid. Sorry. >> It is showing the lid right now. >> Yeah. you're about a million dollars lower than your lid right now. So, this is the actual rate that everybody's taxing. Some people are at lid. If you see $2.50, they're at lid, but I don't see anybody here. I think Ellensburg is close to lid. Um, I'm trying to think who else might be close to lid. I'd have to dig in a little deeper, but there >> the assessed values like those $18,000. Uh if you go up to the top one, that is only the AV within Grant County. >> Uh
070yes, okay. They have a lot of okay >> this should be combined assess valuation here if they're in multiple counties like if multiple counties and pink but up above it's just grant current values. As I said probably not a slide that affects decision making but another data point that might be helpful. So the next slide shows your levy lid. So then we'll we'll see what your what your first reaction was. This is where you could do as a board on slide 15. You can go from 9 million to 13.2 million. >> But they only have a roll back. >> No, this is the new lid. They added $500 per pupil and then it's going up by 6% inflation. So the state just said we have a great idea. We're going to fix the education funding
071problem in our state. You can fix it locally. >> Make the taxpayer do it. >> You can do it locally. So, they are giving you a little bit more in MSOT. There's some special way. They're doing a little baby steps, but they basically said you can fix it and here's how you can fix it if you want. So, the board's decision is where to go between here and here on the next levy. >> Oh, yeah. >> But that's your ceiling and it's pretty robust. When I showed this to Nick and DJ and Tia, there was a gasp. >> We should go up to one a$155. >> Correct. And today you were at a dollar2 right here. That green here. We don't know what this one is quite yet till the county gives us the numbers.
072But you asked for a$125, you're at a$12. You can go up to about 55 is the most. And this Cory planned out we've been pretty consistent with our rates over the last several years. So that is the most. But we put together four examples. I would say none of these are recommendations. They just might be logical thresholds for you that might help you decide where you want to be. Maybe between some of these, maybe at one of these. But scenario one, we're using just conservative growth from your community. And what we said is what if you kept the rates level? Scenario one, rate level, it just slowly grows with inflation. Just kick off with where your last levy dumps off. The question on this one is, this is kind of status quo, bare bones. Are
073you keeping up with every program you want to do right now? Are you keeping up with inflation already? Are you maintaining staffing that you want to maintain or are you already making some cuts? SAS might not be the one you want, but this is kind of like I showed you the ceiling on the last slide. This might be the floor. Scenario two, arbitrarily 5 cents more. You didn't think that this extra amount here gets the job done. This is just 5 cents more. In scenario two, scenario three, 5 cents more. Again, just baby stepping this thing, trying to get to where you can satisfy your needs, maybe not your wants. And then this last one is matching your last palette. This is what you asked for last time, $1.25. 25. This resets it up to
074that ask. So we can prepare a million different scenarios for you.$130, dollar40, dollar19, dollar17, variable rates. This was just hopefully to facilitate problem solving and discussion and ideas. So talked about um inflation growth. Are there projections for taxable value growth in the Quincy school district? Because I would guess in the past it's outpacing. >> Yes. >> Inflation rate. >> Each year you've gone to the levy uh and you've gone to the voters, you've used conservative growth factor and it's outpointed every time. I have your actual growth rates right here. 18% 9 15 there's a two in there. There's another two and 25. The thing about this AV growth is it only comes into play when it comes to the estimated rate. So you can pretty much use a conservative growth factor. It just means you
075might be paying a higher you might be asking the voters for a higher rate than it will actually turn out to be. Other schools are determining that rate because that makes their levy lid change. Your levy lid is only for pupil base. So you could use a conservative. Nick was recommending using this is what he used last time too and just being conservative. here's the rate and hopefully outperform it. >> Yeah. And that 3% that's worked really well for us come in, you know, under what we've asked for. You know, like I said, we've only done it once. We like two pennies. Um Yeah. Yeah. I I want to be, you know, we're honest. We're transparent with voters and I would much rather go conservative. I mean, especially with the way our rates have fluctuated,
076you know, they're they're kind of hard to predict in a way. So, the 3% growth, you know, I do have hope that um the new I've heard two new data center buildings that they're still not on the books and then we still have a substantial amount of construction taking place in our community. So, you know, if I was to crystal ball it, I would say it would be higher than that 3% going forward in the future. But I think that 3% give us a a good conservative number um uh to make sure that we're we're we're not, you know, disappointed voters um and losing that trust that we work so hard to gain. >> You talk about that 3% too, Nick, is that matches the growth in your community every year on new construction. So
077if you use 3% growth, um then the difference could be managed by new construction or more percentage of that. If you start to use a growth factor above 3%, you're telling the community, we think the round buys are going to go up a little faster. We're going to tax it, >> right? So, this is using a kind of a model of what your new construction has been, and hopefully that means that people in homes will pay a level amount while the businesses that move in will pay the increase each year. That would be one of the goals of this. There's four different miles. I'm Nick, I wasn't sure if you want to have some conversation here. >> Yeah, they have four panels. So this is my first time seeing this so I apologize. I'm struggling
078to understand. Um I see like obviously it's always 3% AV and then the number like it's either 110 that's changing but I guess can you point out where the math and what like the equation the calculation? >> Sure. We can scroll back up the first one scenario one. There's a ton of numbers in this slide but keep in mind everything in gray on all four of these is already happened. is locked in actuals. Why? We don't know what it is yet. So that's an estimate. So really the of each four of these charts, we can really just focus on this little mini section right here. And you'll notice here that this goes from 9.1 million to 9.4 that difference in 300,000 is applying the same exact tax rate to a bigger number. And that's assuming
079new construction home values reset and adjust. So what this is saying is our community is going to go from this size to this size, but we're going to keep the rate the same and it's going to generate just a little bit extra, 3% more in dollars each year. So that's where that 3% number comes into play. But when we go up in tax rate, now we're going to tax 5 cents more on with 3% growth. >> So it's a white like it's locked in. That's not changing. This the dollar amount isn't changing, but we don't know what this number is yet because the county hasn't locked in values, but we're going to use a smoking below 3%. This rate of a$110 might be a dollar even if your community grows at 10% again. But we
080think that homes have been on the market a little longer. People are not ask for crazy amounts like they used to. So, we think things have settled down. We're starting to get information from counties and across Tri Cities uh Yaka and Spokane where we got numbers so far they're 3 to 5%. So this is assuming that uh we're going to be around 3% and then the question for the board is this is where we're at now. Do we want 5 cents more 10 cents more or do we want to go back to what we asked for last time and where is the need versus want? >> I guess that's my question is what is the need? Well, you know, like T is on, too. Right now, he is sleep. I mean, really, we've been talking
081about this for two years straight. This the MSO gap just continues to to not get any better. And then in addition to that, you know, we have utilities expenses that aren't being covered by the state. So, between our insurance cost and utility cost, it's right around we have $1.10 million and we're directing about 1.2 of our current levy funds for maintenance and operations. And I've been really, you know, we've been so blessed with this levy in our community and we've been able to use it and we're fully compliant with Melissa's law out of the gates. Um, and we would not have been able to do that without our our sports have new uniforms. Uh, we're a everybody's be able to participate. We haven't had to cut very many athletes. Uh, we have robust clubs. Uh,
082and we wouldn't be able to do that without our levy. But that insurance utilities gap is starting to squeeze that. Um, and I'm worried that if that continues to rise at 1.2 million to go to 1.5, that's getting harder and harder for us to provide some of these emerging opportunities for our kids. So, under his scenarios, that's scenario one is likely not sustainable. Scenario two is closer, >> but doesn't leave much wiggle room. >> No. And I would also say the other piece of that Casey is we're not able to put you we've been able to keep up purchasing new buses which is really important. Um but you know we haven't been able to put a bunch into capital. So we do have a little bit extra we could put into capital and and continue
083to update our facilities. as far as >> we have nice we have nice yes work but you know we're good >> if we did the 125 are we feeling like we're asking for more or when we go to the voters we can honestly say this is just to sustain I don't I don't want to go into it saying hey we want this 125 amount um so we can do xyz and we want to change this and grow here there that I want to be able to honestly say this is just to be able to maintain and keep our current style of living. You know what I mean? >> Is that would is that reasonable for 125 or even 120? Where where where does that fall? >> 120 would would help us with the insurance and
084utilities gap. That would that would take care of that and we would be able you know to divert that funds and to put that back into you know experiences for our students. What would make me a little little nervous if additional expenses or the insurance we see another spike in insurance we'll be right back to where we were where that 125 rate that does leave that does give us a little more discretionary funds um if rates do increase or funding is cut additional funding's cut from the state um so it would cover the insurance gap and then it would give us to put money into the bank um for any capital things that we or any, you know, school vans. Um, you know, that is a case that we do need additional vans, but it
085also be able to help us keep up with our our our transportation. >> And I mean, as well, >> the way it's presented, right, it's the highest of these four options that are put up as examples, but it's also >> it's it's still way under the >> but it's also what we already done. I've already 30 cents is 30 cents lower than our cap. Um and uh it it would definitely the dollar25 would give us there voters have support. Do you want to add anything else to that? Yeah, I mean it's a big decision by the support of the community and I I think the dollar 255 it would it would certainly it would fill that gap and it would allow us to continue to improve our our facilities as well. Well, I think we
086would enhance and I mean, but there are some things that we we still need to do on these projects that we like to, you know, like we'd like to put some fencing projects together for safety and security for our our so that it would it would enhance our security of these projects. >> I mean, so that'd be handy to look at. It's that that whole need over want. We haven't been able to do furniture in multiple grade levels. We were able to get um new furniture for K one and one two and I think we're still getting four and two and second as well. So we put a pause on on purchasing new furniture. And we've been really clear too about making sure that all of our schools have the the same uh furniture, same
087technology. And that's another thing. It would it would, you know, going back to the maintain maintaining the one to one program within our school district is really expensive and it's getting more expensive as things, you know, prices are increasing. Um, we've been really fortunate that we haven't tried to run a tech levy in the past. Uh, because we have this levy to take care of it and the 125 that would ensure that we wouldn't have to run a tech levy, a safety security levy. It's one levy that takes care of multiple needs. And that's what we know really fortunate other communities have to run a tech levy because just their EPO levy doesn't doesn't address those needs. Now at the 115 or 120 rate uh in or it it would be harder to address some
088of those tech needs for sure and some of additional safety and security. And just for an example of just to put in um additional uh single point entries on our doors. We're still not all We have single point entries, but um the access card readers, it's about $10,000 that accurate to say >> and there's still additional doors that we like to to add to it within our schools that weren't part of the original law. >> Yeah. Yeah. It's it's >> I don't >> Yeah. And I'm not saying that the furniture is just an example. Yeah, we did have a furniture rotation place, but we had a pocket um because it is, you know, we have the bright shiny new schools, but we want all schools that, you know, no matter where you attend, you get
089the same kind of experience. You know, another thing that this that this does pay for is the, you know, school safety officer. It'd be nice to have, you know, we've talked about expanding that program u for us to do that at a$15 and$120. Were we able to see your list and of ideas? >> Yeah, we we have the list of what we currently farm and then some of the things we can have weekly update with you guys. So, what the maintenance >> I know um something I've heard from the students is related to um students who are monilingual Spanish speakers. They're depending on like their peers translating Harris and stuff like that. So I know that's what I mean. I think it should also be addressed so all students can learn. >> Well, and all
090our supervision time is paid out of our our our money as well. So does D Paris as well and our psychologists, counselors, mental health therapists, a lot of things. And again, we're just selecting that dollar 25 or 20 or even a dollar 10. I don't ever take that for granted. It's really where where does the board want to land? >> So, right now we're at 110. >> We're approved at 125 though, right? Correct. Was approved at 125, but because because property values increased. >> It's a$150. >> So, we're still quite a bit the lump sum that a that a homeowner pays doesn't change. It's just the amount they're paying per $1,000. >> But, you know, I think also recognizing that times are hard, too. you know so conscious of that it's challenging right now so
091I want to we have to recognize that as well um so I I think anything you know the$125 dollar 20 a$120 that would take that would take care of the M sock utility and that we can use that $2 million for other purposes that would in our building rather than Yeah, the other trick is, you know, ask for enough now that when we come back in four years and look at another lily, it's not asking for additional 40 cents, >> right? >> This is no decisions. This is just information for you guys to go in, get feedback, think about. Um, we'll continue this conversation at our next meeting, but ultimately, you know, we we'd really like to land just for our timeline by November 10th. And if we have to call special meeting past November
09210th, we can do that. I just don't want to go like November 10th, then, you know, we But we we have time. >> We can look over all these assumptions during the marriage. >> That sounds good. I guess see if there's any additional you know so I'm hearing more that maintenance and facilities list I can even we have some you know some information from Sean just really how much how much it cost to run that the one to one which is essential now it's it's not optional it's not a luxury thing to have onetoone devices uh we can run something on that safety and security cost I can make sure that you guys have all that and then just kind of a list of everything that already touches um I'll give that to you as
093part of my update. And last thing I have for the board is very brief refunding update. So we're coming up on the 10th anniversary of your bonds being issued. And what that means is they are now callable. Purchase a home or a car. We can refinance them whenever we want even if it doesn't make sense. When it comes to school bonds, when we're talking $100 million, investors want to know, I'm investing in you. I don't want you to refinance this tomorrow. So we have call protection for investors is common in municipal world. So the 10 year anniversary is the first chance that you have the right but not the obligation to refinance these bonds. And so we move on to slide 17. Uh just a couple notes. It's the process of issuing a new bond
094to pay off the old bond and we do not extend the term. So it'll still be 10 years left. Uh the savings directly reduce tax for taxpayers. the district can keep $0 and0. So all the work that Tia and Nick and DJ would do on this board's refunding would just be time that they have to work on it, but it would impact taxpayers only and not the district's budget. Uh and we cannot create any new money, only refinance what is out there can extend it. So there's a lot of protections for the taxpayer put in place. Uh we've been tracking this for about a year, but we've been starting to bother Nick about probably in the summer. And on the next slide, I just show you a little bit about what the estimate is currently
095and what it's looked like over time. The original par was 95 million. You had about an $8 million premium at that time. The coupons were 5%. So that's the number we'd be looking to refinance. It's a little bit sad, but there's 70 million left to pay off that hundred billion. And that's common when you see how much things get paid off towards the tail end. You got your home mortgage. Now you're looking, it goes down slow at first, really fast at the end. Same with the bond. In June, the savings were a little bleak. They were okay. $2 million. That's a good amount. Um, but is the juice worth the squeeze to work on it that much for 2% savings. Uh, numbers went up a little bit as the tariffs kind of caused a little
096drama. We're kind of figuring that out. Savings up to 4%. Well, today, uh, last week when we were getting ready for this presentation, we were up to 5%. It's kind of an important number there. There's no law that says the board has to have this minimum of savings or refinance debt. However, I like to bring forth my old ESD hat, right, to my vendor hat trying to sell something is what policies are out there. The state of Washington has a policy, a recommendation that you only proceed with a bond that has 10 years left if savings are a minimum of 5%. Just barely there. So, as we're watching interest rates, you might flirt up and down this. Sometimes the boards will say that's great. The state recommends 5%. The laws are there. We want to
097go forward if there's at least 4% savings or 3% or 7%. So the board will be able to set a target moving forward and give Nick and Tia DJ the green light that says the board gives you our blessing to refinance this only if you save us this much money. But there's no decision to be made now because it's not callable quite yet. It'll be this spring. But we wanted to plant the seed and show you because that comes into play when you're looking at setting your levy rates. >> What's the likelihood of it going down? >> I wish I had magic. But >> I was saying higher than lower. >> So federal. Anybody else watch the Federal Reserve like I do? >> In September. They're looking to cut again in October and possibly again
098in December. So there might be three cuts that would customarily in a normal market lead to this going up and interest rates going down. >> So let me wait till >> So you have to wait. >> You have to wait till spring. >> What we can do is we can bring Cy back um for a presentation. April >> uh I would say January. The key is bring >> the key is if you can refinance >> why bring it back at all if you can just tell us what the number why you need to come back >> you can work on it up to three months before uh but you there's a little bit of ramp up on efforts if you refinance it after June 1st you start to pay the debt at old rates so
099then the savings go down if rates stay level >> they would the savings could get better if the rate declines faster than the amount you're already paying. The earlier the better. >> Earlier the better and less rates go down faster. >> And this this manifests itself as a lower tax rate on tax bills that go out the next seg when that happens. >> This is the annual savings of that 3.5 million. How much less you would budget in the board. So Tia, she builds your debt service fund budget. she would levy this much less than taxes each year in your debt service. So I think that's one thing you need to consider if the board you know the levy rate you want to go to$125 or whatever rate you're thinking about um assessed value is
100going to increase so that r most likely going to drop and then if we refinance bonds it will also the total what they're paying for school will also drop so and we will bring I think you know it's just always funing I like seeing Corey so we'll bring Cy back here because I also want to know how do you make that what what do you have to So I think you should look forward to hear about how we go through the steps too. Um and just kind of outlook that changes to the annual and if it's unlike see that >> and the next question might be is what does this mean for taxpayers because it's hard to tell a taxpayer how this helps them. Is that like four bucks for you? Um this would be
101five cents per thousand. >> Okay. So you had a $100,000 home you'd save five bucks a year. Okay. But $400,000 would be 20 bucks a year for 10 years. It's maybe a couple coffees now. >> But 20 bucks a year to the average family for 10 years is something worth consideration. But I'm biased as I'd like to come back and work on this. Um, but we're watching it for you and we'll probably bug you again in about three months a >> refinancing does like renew the length of time that No, >> we'll keep everything the same. Just borrowing a new. So instead of your first one was 20 years, now there's 10 years left. We're going to match up your 10 years. And then all of these estimates include legal fees and underwriting fees. So
102it already includes everything. >> Oh, okay. That's good. >> So the 57 would be the net and hopefully maybe gets to be four million. Maybe just keeps growing as the Fed cuts, but just crossing fingers. >> Just more school districts. Why would a school district not want to refinance? Are there very good examples? >> There's there's only been a couple cases. Uh I have one school district that's not refinanced right now because they do not have the staff. Uh they might have just lost their CFO uh the true retirement and they just they're buried and they just can't accomplish it. That's one right now. The other one is um if your financial position is dire and you go to the market and you get an upgraded Moody's rating or an S&P rating and they downgrade
103you and say your financial position is poor and then all of a sudden it opens a can of worms. >> Uh so if your financial position is solid, you will have to get a rating refresh to go out to the market, but everything is pretty darn stable here. So those be it's a good question. But no, we did nine refundings last year for about 400 million in total and everybody was was pretty pleased, but it is a little bit of work. So that side of the room over there, it's probably excited, but also >> hard to jump. >> He's on mute, so she can't say anything. >> She's smiling. >> She did text me though. AC you asked that question about you kind of like you know if you can dollar back where we need
104to be to cover increasing cost this whole when you start making transfers into capital and transportation uh fund like we used to to maintain current buildings and buses >> would be scared at 128 >> I find is that like >> we can get additional owners for sure if you want the one beauty of a 25 is exactly what we'll be after. >> I think a dollar I think a$125 does it would have cost. >> Okay. I will be more. >> Thank you. >> Good to see you. Thank you. Appreciate your time. Go >> Mars. Monday. >> Y. Okay. That's it. All right, that concludes our meeting proceeding. Thanks everybody for that practice. >> Oh, yeah. I mean, I'm blame later.